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2015 (6) TMI 480 - ITAT HYDERABAD

2015 (6) TMI 480 - ITAT HYDERABAD - TMI - Income from sale of Land - Capital Gain or business income Whether land sold by assessee was agricultural land or capital asset Whether the transaction was an adventure in the nature of Trade ? - Held that:- As relying on case of Smt. M. Vijaya and others [2014 (6) TMI 587 - ITAT HYDERABAD] we uphold the impugned order of the Ld. CIT(A) holding that the land in question being agricultural land situated beyond 8 K.Ms from the limits of Hyderabad Munic .....

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nd Smt. Asha Vijayaraghavan,JJ. For the Petitioner: Mr. Rajat Mitra For the Respondent: Mr. V. Raghavendra Rao ORDER PER P.M. JAGTAP, A.M. This appeal is preferred by the Revenue against the Order of the Ld. CIT(A)-IV, Hyderabad dated 12.09.2014 and the grounds raised by the Revenue therein read as under : 1. The learned CIT(Appeals) erred both in law and on facts of the case. 2. The Ld. CIT(A) ought to have appreciated the fact that the Assessing Officer has brought on record all the informatio .....

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Officer has discussed the issue of treatment of land (whether agricultural or not) at length, on the guidelines discussed by Hon'ble Supreme Court of India in the case of Sarifabibi Mohammad Vs CIT. 5. Any other ground(s) that may be urged at the time of hearing. 2. The assessee in the present case is an individual who filed her return of income for the year under consideration on 30.07.2007 declaring total income of ₹ 1 lakh. The said return was initially processed by the A.O. under .....

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ourse of search conducted in the cases belonging to Mr. Venegalla Anand Prasad group, the assessee had sold a plot of land located at Dundigal (V), Qutubullapur (M), Ranga Reddy District to M/s. Varun Construction for a sum of ₹ 1 crore under an agreement of sale with possession cum Irrecoverable General Power of Attorney on 12.03.2007. As claimed by the assessee, the said land was agricultural land in terms of section 2(14)(iii) and since it was located at Dundigal (v) beyond 8 KM of any .....

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land did not appear conducive for agriculture. The A.O. also found that there was no evidence produced by the assessee in support of her claim of having carried on any agricultural activity. He also noted that no agricultural income had been declared by the assessee in her relevant returns of income. He further noted that the land in question along with neighbouring lands adjacent to the Urban Agglomeration around the City of Hyderabad had been bought by the Associates of M/s. Amsri Developers. .....

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s business income in the assessment completed under section 143(3) read with section 153C vide order dated 25.03.2013. 3. Against the order passed by the A.O. under section 143(3) read with section 153C, an appeal was preferred by the assessee before the Ld. CIT(A) who identified the three issues involved for consideration in assessee s case and decided the same as under : Whether the transaction was an adventure in the nature of Trade ? 7. The Assessing Officer had noted in his order that the a .....

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plotting which would suggest an intention to undertake a business activity. The mere fact that the land prices may have escalated in the vicinity which the appellant has taken advantage of or that other landowners in the vicinity may also simultaneously have taken advantage of, cannot lead to a conclusion of 'a systematic activity amounting to an adventure in the nature of trade'. I, therefore, hold that the transaction of sale of land at Dundigal was not an adventure in the nature of t .....

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elevant point of time, that there was no developmental activity in the surrounding area at the time of sale (falling in the AY 2007-08) and that there was no application for conversion of the land into non-agricultural use prior to the sale. The ITAT, therefore, concluded that the land in question had to be held as agricultural land. 13. The ITAT had taken a similar view in the case of Bhavya Constructions P. Ltd. The land in this case was located at Bowrampet village, under. Qutbullapur Mandal .....

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re specified in the pahanis. The land was sold at the same time as that in the case of M. Vijaya. The land was described as agricultural in the sale deeds, both while purchasing and selling the land. Based on this evidence and following the ratio of the decision discussed above, it is held that the land was agricultural land. Whether the land was located within a distance of 8 KM from the Municipal Limits of Hyderabad ? 8. The appellant had furnished a certificate issued by the Deputy Collector .....

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ng from its transfer was not chargeable to tax in the hands of the assessee as capital gains. He also held that the transaction was not an adventure in the nature of trade. Aggrieved by the Order of the Ld. CIT(A), the Revenue has preferred this appeal before the Tribunal. 4. We have heard the arguments of both the sides and also perused the relevant material on record. The learned Representatives of both the sides have agreed that the issue involved in the present appeal of the Revenue is squar .....

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nal has summarized its conclusions in paragraph Nos. 36 and 37 of its order as under: 36. In view of our above discussion, in our opinion, the land is not situated within the Qutubullapur municipality, but, the same situated in the Dundigal village and the evidence brought on record suggest that the land is an agricultural land, hence, it is not liable for taxation. Accordingly, the addition made on this count is deleted in all the appeals under consideration. No evidence suggests that Dundigal .....

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0/2008, dated 04/10/2008 informing that the land is not falling in the GHMC limits. At page 77, a copy of the agricultural land certif icate is placed, issued by the Deputy Collector & Mandal Revenue Off icer, Qutubullapur Mandal vide Ref . No. A/13607/2005, dated 20/08/2005 stating that the lands are under cultivation by raising crops i.e. paddy, cattle feed, maize, jowar, vegeteables etc. 37. Further, we make it clear that when the land which does not fall under the provisions of section 2 .....

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